Newbridge's affiliate programme has brought many benefits to Newbridge. But perhaps the ultimate judgement on the success of the programme should be the success of the affiliate companies themselves. The financial picture is rosy. The affiliates now have a market capitalisation of more than US$ 823 million, and are growing their sales well in excess of 100 per cent year on year. Perhaps most significant of all, the highest growth is through non-Newbridge channels, an excellent indicator of industry acceptance of these advanced technologies.
Great article! Thanks for posting.
I'm convinced most don't recognize the value the affiliates bring to NN, both in increased equity and in access to leading-edge technologies. In fact the system is so successful, Siemens has recently initiated its own version. I posted the SFChronicle article earlier, but have since found another, this time from the San Jose Mercury:
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mercurycenter.com
Published Thursday, August 20, 1998, in the San Jose Mercury News
Siemens makes a bold valley play with new venture fund
BY SCOTT HERHOLD
Mercury News Staff Writer
In his two decades with Siemens AG, Anthony T. Maher has risen to become one of the highest-ranking Americans in the German telecommunications giant. As a member of the board for the Siemens Public Communications Network Group, he's one of four people who control vast resources. And he's emerged now as point man for one of Siemens' bolder plays in Silicon Valley, a new venture fund in Santa Clara.
''We brought the mountain to Muhammad,'' says Maher, referring to both the size of Siemens and the lure of Silicon Valley. In truth, though it employs 4,300 people in California, Siemens comes late to the venture party. One of its chief competitors, Lucent Technologies Inc., announced six months ago that it was setting up a venture fund that would work with a new Bell Labs office at Stanford Research Park. And giants like Intel Corp. and Microsoft Corp. have made strategic investments for years.
But Siemens' move reflects, yet again, the crucial role that big international telecommunications firms assign to the ferment in Silicon Valley.
A few facts: Siemens says it expects to invest between $100 million and $300 million over the next three years in venture capital, with 70 to 80 percent of that in Silicon Valley. The company's venture operation will be run by Bjorn Christensen, a Siemens veteran, and will have six people initially. Asked about what stage of venture investing they prefer, Siemens officials say ''the earlier the better.'' But they acknowledge that most of their money will probably come later in a company's life.
Siemens faces stiff competition. Lucent's venture arm is headed by John F. Hanley, a former vice president of corporate strategy who helped plan Lucent's IPO. And venture capitalists are keeping a careful eye on Lucent, expecting that a change in its accounting rules on Oct. 1 will lead to more acquisitions.
Ironically, both Siemens and Lucent confront the perception that they might be corporate deep-pockets, brought in to pay hefty prices to buoy uncertain start-ups. It's something that Maher has thought about -- and he says he intends to scrutinize deals. ''I understand that potential problem, and I understand how to notice it and how to prevent it,'' he says.
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S.F. Chronicle article:
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German Industrial Giant Starts Silicon Valley Venture Fund
Also, IBM's smooth move and the gifts are in the e-mail
Tom Abate ÿSaturday,ÿAugust 15, 1998
One of Germany's technology giants has dipped its toe into the Silicon Valley venture pool by opening a $300 million fund to invest in networking and telecommunications startups.
Siemens AG is a $70 billion industrial Frankenstein that grafts together 16 different divisions, including electric power generation, chipmaking, computing and telephone equipment.
Given its size and complexity, Siemens isn't noted for speed, which is a liability in the fast-moving telecom equipment business, where it competes with U.S. firms like Lucent and Cisco Systems.
That's why Siemens executive Anthony Maher said the company chose Mustang Fund as the name of its new venture arm, which will be headquartered in Santa Clara.
''A mustang is something that moves fast and has the image of being free-wheeling,'' said Maher, who introduced the new fund to local VCs at a Thursday night dinner in Palo Alto.
Only time will tell whether the fund will fit the name. Siemens will target startups in three telecom-related areas: technologies that carry voice and data over the same lines, equipment to create broadband or wireless networks and software to help manage such networks.
Peter Morris, telecom partner at New Enterprise Associates, said that in addition to cash, Siemens could offer startups access to markets in Europe and Asia.
''Telecom startup investments is an area where Cisco has had an effective monopoly,'' he said. ''Siemens is going to challenge that.''
In addition to its venture fund, Maher said Seimens will also be looking to acquire full-grown telecom players.
With an eye toward merger possibilities, investment bankers George Boutros and Bill Brady of Credit Suisse First Boston hosted Thursday's dinner, which introduced the fund's manager, Bjoern Eske Christensen, to local VCs. >>>> |
